Demand and Supply Issues Constraints on Capacity Enhancement And Recommendations. Stakeholder Workshop June 13, 2007

Transcription

1 Demand and Supply Issues Constraints on Capacity Enhancement And Recommendations Stakeholder Workshop June 13, 2007 The Imperial Hotel, Janpath, New Delhi

2 Countries considered for Case Study China Korea Malaysia Vietnam

3 Countries Chosen for China Malaysia

4 China Highway History Km of Roads 1978 China opens up for reform 890,000 Km 1990 During kick off stage of Expressway development 1.0 million Km million Km million Km

5 China Highway History 1988 The first Expressway Built (Shanghai) Vertical and 7 Horizontal Trunk Highway Network Plan 1998 Asian Economic crisis Expressway Trunk Development Plan

6 China Expressways

7 China Highway History How was it achieved? International companies helped build Chinese capacity Consortiums formed by international and domestic contractors and consultants. Use of internationally recognized and acceptable form of contract (FIDIC) A good Master Plan All expressways implemented by each of the 31 provinces and municipalities

8 China Highway History How was it achieved? New policies for raising funds Provincial governments responsible for funding highways Chinese contractors were all SOEs Encouragement to use private money Private concessionaires to operate toll roads Limited use of BOTs

9 China Highway Industry Capacity Building Lessons Learned Develop integrated Master Plan Provincial government involvement Ensure local plans integrate with national plan Simultaneous implementation by all provinces Greenfield development allows implementation with no interference from existing networks Identify weaknesses with industry capacity and seek help internationally Implement appropriate policy changes

10 China Highway Industry Capacity Building Lessons Learned (Continued) Develop trade associations with one main group as spokesman for industry Experiment with alternative contracts but ensure appropriate legal framework exists Utilize private concessionaire arrangements Site personnel to be authorized to make decisions Respect dispute resolution mechanism Clear legislative and regulatory system

11 Malaysia Highway History The most modern road infrastructure in SE Asia Third in Asia after Japan and China Length of all road network rose from 61,294 Km in 1995 to 73,403 Km in 2002 Total length of greenfield expressway 1,192 Km.

12 Malaysia Highway History 1970s - Original plan was to widen existing roads Decided on a greenfield expressway system Start of the North South Expressway First privatized BOT project 1985 to now Best expressway system in SE Asia developed with 21 BOT concessionaires

13 Malaysia Expressways

14 Malaysia Highway History How was it achieved? 1980 MHA was created International consultant advised MHA Initial Contracts let on NS expressway using international contractors/consultants 1983 First BOT expressway concessionaire agreement awarded To now 20 more concessionaire agreements signed

15 Malaysia Highway Industry Capacity Building Lessons Learned Develop an effective master plan use international experience to help Enact required policy Establish a separate agency to supervise toll roads Use BOT concessionaire agreements use international experience to help Use highway program to build capacity of other industries (30% concrete pavement required)

16 Malaysia Highway Industry Capacity Building Lessons Learned (Continued) All agencies must enforce government policy Project level staff must be authorized to make decisions Develop licensing and regulations for industry Establish an effective dispute resolution mechanism Develop trade associations with one organization to be voice of industry

17 Thank you!